Skip to content
  • XERO Sign In
  • Client Sign In
    • Suralink Client Portal
    • eMoney Login
    • Black Diamond Login
  • Facebook
  • LinkedIn
  • Youtube
  • About
    • History
    • Our Team
  • Services
    • New Doctors
    • Financial Planning
    • Practice Transitions
    • Wealth Management
    • Accounting Services
    • Tax Services
    • New Clients
    • Book a CWA Speaker
  • Resources
    • Resources
    • Podcast
    • Annual Meeting
    • Events
    • 3to1 Foundation
  • Blog
  • Contact
  • XERO Sign In
  • Client Sign In
    • Suralink Client Portal
    • eMoney Login
    • Black Diamond Login
  • Facebook
  • LinkedIn
  • Youtube
  • Careers
  • References
  • Privacy
  • Disclosures
  • Terms of Use
  • Events
  • About
    • History
    • Our Team
  • Services
    • New Doctors
    • Financial Planning
    • Practice Transitions
    • Wealth Management
    • Accounting Services
    • Tax Services
    • New Clients
    • Book a CWA Speaker
  • Resources
    • Resources
    • Podcast
    • Annual Meeting
    • Events
    • 3to1 Foundation
  • Blog
  • Contact

Small Business Health Reimbursement Arrangements (HRA)

  • by CWA
  • •    February 6, 2017
SHARE

 HRA PLANS NOW POSSIBLE FOR SMALL BUSINESSES

Even if your practice has fewer than 50 employees, new federal legislation that took effect January 1 offers you the opportunity to set up a Health Reimbursement Arrangement Plan (HRA) as an employee benefit. As part of the 21st Century Cures Act, your practice may be able to set up a Qualified Small Employer Health Reimbursement Arrangement.

The new small business HRA Plan operates similarly to HRAs set up by larger businesses. Your employees purchase their own health insurance and your practice reimburses them, tax-free, for their health insurance and medical expenses.

SOME KEY REQUIREMENTS

– Your practice has fewer than 50 “full-time equivalent” employees. You can check eligibility and calculate that threshold on the IRS website. {https://www.irs.gov/affordable-care-act/employers/determining-if-an-employer-is-an-applicable-large-employer}

– Your practice does not offer group health coverage to employees

– You are required to offer the same HRA health plan to all full-time employees; you can exclude or limit seasonal and part-time employees

– Your reimbursements are capped at $4,950 for each individual or $10,000 for each family, yearly

– Your employees are required to get their own “minimum essential” health insurance, and prove they are covered

– Your employees can use the HRA to help offset their insurance premiums, co-pays and other out-of-pocket medical, dental and vision expenses

– Your employees have flexibility in their health insurance including buying individual plan(s), being on a spouse’s plan or being on a parent’s plan

OPTIONS AND NEXT STEPS

To find out if a Small Business HRA makes sense financially for your practice and your employees, touch base with your CWA advisor and we can explore that possibility together.

Cain Watters is a Registered Investment Advisor.  Cain Watters only conducts business in states where it is properly registered or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability.  Request Form ADV Part 2A for a complete description of Cain Watters investment advisory services. Diversification does not ensure a profit and may not protect against loss in declining markets.  Past performance is not an indicator of future results. 

LIKE THIS ARTICLE? HERE ARE OTHERS YOU MIGHT LIKE.

Is Now the Right Time to Buy or Sell a Dental Practice?

March 8, 2023

How the Secure Act 2.0 May Affect Your Retirement

February 10, 2023

How to Rise Above the Challenges in Your Dental Practice

February 6, 2023

Claim Inflation Reduction Act Credits on Your Tax Return

November 18, 2022
GET THE LATEST NEWS AND INFORMATION IMPACTING YOUR PRACTICE.
Email will be used in accordance with our Privacy Policy

CATEGORIES

All
Categories
  • Accounting (7)
  • Accumulating Wealth Podcast (78)
  • Annual Meeting (14)
  • Digital News Feature (107)
  • Financial Planning (121)
  • Inside CWA (27)
  • Investing (57)
  • Knowledge & Know-How (75)
  • News (80)
  • PR/Marketing/Social Media (5)
  • Practice Management (82)
  • Practice Transition (1)
  • Seminars & Events (12)
  • Tax News (83)
  • Technology (5)
  • The 3to1 Foundation (12)
  • The Advisors' Shelf (11)
  • Videos (31)

TOP POSTS

Employee Retention Tax Credit Retroactive Credits for Dental Practices

September 16, 2022

Roth or Pre-Tax? Select the Best Savings Strategy for You

April 18, 2022

IRS Funding Limits for 2022

January 14, 2022

Regaining Control of Dental Practice Salaries

July 9, 2021

Employee Retention Tax Credit Retroactive Credits for Dental Practices

September 16, 2022

Roth or Pre-Tax? Select the Best Savings Strategy for You

April 18, 2022

IRS Funding Limits for 2022

January 14, 2022

Regaining Control of Dental Practice Salaries

July 9, 2021
CONNECT WITH US
  • About
    • History
    • Our Team
  • Services
    • New Doctors
    • Financial Planning
    • Practice Transitions
    • Wealth Management
    • Accounting Services
    • Tax Services
    • New Clients
    • Book a CWA Speaker
  • Resources
    • Resources
    • Podcast
    • Annual Meeting
    • Events
    • 3to1 Foundation
  • Blog
  • Contact
  • Careers
  • References
  • Privacy
  • Disclosures
  • Terms of Use
  • Events
Cain Watters & Associates 17 Cowboys Way, Suite 300 Frisco